As companies continue to review their global site selection options, they are realizing the strong, measurable advantages a U.S. location offers. These advantages can easily be overlooked if the location decision is based on limited information or preconceived notions.
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The Southern States are driving into the future on the strength of the motor vehicle industry. These states tend to be heavy on manufacturing; their manufacturing sectors tend to have strong automotive activity, and it’s a good time to be in that business. That’s among the reasons all six of the states in this region took home Area Development’s Silver Shovel honors earlier this year.
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Although still of great importance, labor costs have taken a back seat to other factors.
The importance of the outright cost of labor eased in the latest Area Development survey, to the #3 factor, compared with its ranking as the #1 factor in the prior year’s survey of corporate executives.
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John D. Tully, President & COO, Michelin Development Company (Q3 2014)

Forming positive relationships with the communities in which they are located is important for companies, large and small. These relationships foster further economic growth within the host communities. With that in mind, Area Development’s editor recently interviewed John Tully, the director of Michelin Development, formed specifically to offer support to new small and medium-size businesses.
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To attract and retain core manufacturing businesses in the twenty-first century, communities will have to offer significant workforce development support, combined with a business climate package that makes their companies competitive with producers that enjoy lower labor costs and more favorable taxation throughout the rest of the world.
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BASIC BUSINESS TAXES:Corporate Income Tax: 6.5 percent of net income; deductions allowed for federal income tax paid or accrued for a lower effective rate of 4.5 percent

Secretary of State Qualification:
Before transacting business in Alabama, a foreign corporation (corporation incorporated outside of Alabama) must qualify with the Alabama Secretary of State; foreign corporations must file an application for certificate of authority (form CD-2) with the Alabama Secretary of State along with a certified copy of the articles of incorporation and must pay a $175 qualification fee.

Alabama Business Privilege Tax: The tax base is the taxpayer's net worth apportioned to Alabama; the rate ranges from $0.25 to $1.75 for
each $1,000 of net worth in Alabama; minimum privilege tax is $100; maximum is $15,000, except for financial institutions, financial institution groups, and insurance companies, which have a maximum privilege tax liability of $3 million; an electing family limited liability entity is capped at $500.

Sales and Use Tax: 4 percent on gross proceeds of sales of tangible personal property and gross receipts of amusement businesses; 1.5 percent on manufacturing machinery and farm equipment; cities and counties may impose additional tax.

Property Tax: State rate of 6.5 mills is based on 20 percent of fair market value of property not otherwise classified (including industrial); 10 percent of agricultural, forest, and residential property; 30 percent of fair market value of utility property; additional taxes levied by local jurisdictions; inventories, goods-in-process, and pollution- control equipment are exempt from property tax.